Full Year 2025 GYM Group PLC Earnings Call Transcript
Key Points
- Closing membership increased by 4%, with revenue up 8% for the full year 2025.
- EBITDA less normalized rent rose by 19% to GBP56.7 million, surpassing consensus expectations.
- The company opened 16 new sites in 2025, with plans to open at least 20 more in 2026, all funded from free cash flow.
- Free cash flow increased by 10% to GBP38.3 million, enabling site expansion and debt reduction.
- The mature site ROIC improved by 2 percentage points to 27%, with new sites showing strong initial performance.
- Site cost inflation is expected to be higher in 2026 due to noncommodity electricity rate increases.
- The company faces challenges from increased non-CapEx costs related to new member management and payment systems.
- Despite strong performance, the net debt remains at GBP59.3 million, with no further reduction expected in 2026.
- The company is experiencing competitive pressures, with one new site impacted by competitor openings.
- There is uncertainty regarding the impact of GLP-1 treatments on gym membership demographics and usage patterns.
Good morning, and welcome to the 2025 full year results Presentation for the Gym Group. Thank you for making the time to join us in the room and on the dial-in. After the presentation, we'll take your questions in the room first and then from the webcast. Our CFO, Luke Tait and I will be doing the presenting today.
And here's what we plan to cover. I'll start with an overview before handing to Luke to share our 2025 full year financial results. I'll then provide a progress report on our next chapter growth plan and summarize before taking your questions.
So starting with the overview. And I'm pleased to report strong progress for the full year 2025. Closing membership was up 4%, with revenue for the period up 8%, 3% on a like-for-like basis. With this performance and strong management of costs, EBITDA less normalized rent was up 19% at GBP56.7 million. The market we operate in grew again in 2025, UK penetration is up to a new high, around 17%, and we expect this growth to continue. In line with our next chapter growth plan, we've
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